Register and run a company in mainland China

01 · ChinaMNC

Why China, and why now

Founders look at mainland China for reasons that are usually concrete: a very large consumer base, deep manufacturing and supplier networks, and an ecosystem of engineers, designers and logistics providers that is hard to match elsewhere. For many businesses the market is also a place to learn quickly, because customers, competitors and suppliers are all close together.

It is equally important to be clear-eyed. China is not one market. Tiers of cities, regions and customer segments behave differently, and digital channels have their own logic. Competition is intense, and local players move fast.

Before registering anything, define what you are testing. Is the goal selling to Chinese customers, sourcing and quality control, research and development, or serving existing global clients with a local team? Your answer shapes the entity you choose, where you register it, and what you put in the business scope.

Treat market entry as a sequence of small, reversible decisions. Start with a realistic view of demand, a rough cost model, and a named person responsible for the China plan. Founders who arrive with a hypothesis and a budget for learning tend to make better structural choices than those who register first and figure out the business later.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures foreign founders most often weigh are the wholly foreign-owned enterprise (WFOE), the joint venture (JV), and the representative office (RO). Each fits a different stage and purpose.

• WFOE: A limited liability company owned entirely by foreign investors. It can engage in permitted business activities, hire staff directly, invoice customers and hold capital. It is the usual choice for companies that want to trade, deliver services or operate independently. Setup involves more preparation than an RO, including capital, address and scope decisions.
• Joint venture: A company shared with a Chinese partner. A good partner can bring licenses, channels, land or local relationships. The trade-off is shared control, and the need for a shareholders' agreement that handles governance, deadlocks, transfers and exits before problems appear.
• Representative office: A liaison office that cannot earn revenue directly. It suits market research, coordination and quality control. It is simpler in some respects but limited, and it still carries staffing and compliance duties.

Ask which activities you must perform onshore, whether you need to invoice Chinese customers, and how much control you want. Those answers usually point to one structure.

03 · ChinaMNC

The five-step registration path

Registration in mainland China generally follows a recognizable sequence, though each city adds its own steps and timing.

• Step 1: Plan and validate. Confirm your business activities, choose a city, and check whether your sector has restrictions or requires extra approvals. Decide on structure, capital and shareholders.
• Step 2: Prepare the name and documents. Reserve a company name, then prepare incorporation papers, investor documents and translations. Foreign documents often need notarization and legalization or an equivalent process.
• Step 3: Secure an address and draft the scope. Arrange a registered address acceptable to the local authority, and write a business scope that matches what you will actually do.
• Step 4: File and obtain the license. Submit the application through the local market regulation system. Once approved, collect the business license, then arrange seals and basic registrations.
• Step 5: Open accounts and start compliance. Complete bank account opening, tax registration and any sector-specific filings, then set up bookkeeping, payroll and reporting routines before trading.

Each step depends on the one before, so build in time for document corrections and local review.

04 · ChinaMNC

Documents you will likely need

Document requirements vary by city, structure and sector, but most foreign founders should expect a core set.

• Investor documents: Certificate of incorporation or equivalent for corporate investors, or passport for individuals, often notarized and legalized, with Chinese translations where required.
• Company documents: Proposed name, registered address proof, articles of association, business scope, capital and contribution schedule, and details of legal representative, directors, supervisors and managers.
• People documents: Passports or ID copies for appointed officers, contact details, and sometimes proof of address or photographs.
• Authorization papers: Powers of attorney for whoever files on your behalf, plus application forms completed in the local format.

Two practical points save time. First, names must match exactly across every document, including spacing and middle names. Second, translations should be consistent and prepared by someone who understands the filing system. Keep clean digital copies of everything and expect to resubmit corrected pages. Requirements differ for restricted sectors, so check with the local authority or a qualified adviser before assembling a full pack.

05 · ChinaMNC

Registered address and business scope

Two details cause more delay than almost anything else: the registered address and the business scope.

The registered address is the legal location of your company. Many cities require a real, documented premises suitable for the declared activity, and some allow serviced or incubator addresses. Landlords may need to provide ownership papers and lease documents in the local format. Before signing a lease, confirm the address can be used for company registration and for your specific business. A cheap address that cannot support your license is expensive later.

Business scope describes permitted activities. Write it to cover what you will do now and plausibly soon, using the standard wording the local system recognizes. Too narrow, and you may be unable to invoice for core services; too broad, and you may trigger extra approvals or scrutiny. Some activities require pre-approval or a license before they can appear.

Keep both items aligned with your real operations. Address changes and scope amendments are possible but add filings, time and cost, so get them right at registration.

06 · ChinaMNC

Banking, tax and visas

Once the license is issued, the operational work begins.

Banking. Opening a corporate account usually requires the legal representative or an authorized person to attend in person, with the license, seals, identification and supporting business documents. Banks apply their own onboarding and due diligence, so prepare a clear explanation of your business, expected flows and counterparties. Approval is not automatic and can take time.

Tax. Register with the tax authority, confirm your taxpayer status and understand invoicing rules. Mainland China uses fapiao, official invoices that matter for deductibility and customer requirements. Set up bookkeeping from day one and keep records that support every transaction. Rates and incentives depend on activity, location and status, so confirm your position with a qualified adviser rather than relying on general summaries.

Visas and permits. Foreign staff typically need a work permit and a residence permit, and the process usually involves the employing entity. Plan hires around permit timelines. Founders should also confirm their own immigration position before travel and hiring.

Build these workflows early. They are easier to design than to repair.

07 · ChinaMNC

Common mistakes to avoid

Most problems are predictable. These are the ones founders report most often.

• Registering before defining the business. Choosing a structure or scope before knowing what you will sell leads to amendments later.
• Underestimating documents. Missing notarization, inconsistent names and poor translations cause repeated rejections.
• Choosing an address on price alone. Confirm the address supports registration and your licensed activity.
• Writing a careless scope. Too narrow blocks invoicing; too broad invites extra review.
• Ignoring banking early. Account opening needs preparation and can gate your first transactions.
• Treating tax as an afterthought. Invoicing, bookkeeping and reporting need routines from the first month.
• Skipping local advice. Rules differ by city and sector, and generic guidance can mislead.

The common thread is planning. Founders who map requirements, keep documents consistent and involve qualified local help before filing tend to avoid the expensive rework that follows a rushed registration.